Coal India JV with RRVUNL Boosts Shares Amid Renewable Energy Push

25 Sep 2024 , 11:35 AM

Coal India’s shares rose on September 24 after announcing a joint venture (JV) with Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL) for renewable energy projects in Rajasthan.

Coal India will hold a 74% stake in the joint venture, with RRVUNL holding the remaining 26%.

The joint venture is set to establish a 2×800 MW Brownfield thermal power project at RRVUNL’s Kalisindh Thermal Power Station and may also undertake other thermal power projects, including renewable energy obligations.

The JV will be formed as a private limited company with an initial paid-up capital of ₹10 lakh. The authorized capital will be ₹10 crore, divided into 1 crore equity shares priced at ₹10 each.

The registered office of the joint venture company (JVC) will be based in Jaipur, Rajasthan. Coal India will nominate four directors, while RRVUNL will nominate two directors on the JVC’s board.

At the time of writing, Coal India’s stocks were trading 0.059% higher at ₹504.60 on NSE. Year-to-date, the stock has gained 32%, and over the past 12 months, it has surged 75%, outperforming the Nifty’s 31% rise during the same period.